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Indirect Spend Management
Indirect spend management refers to minimizing and optimizing costs for a business. Specifically, it refers to managing overall spending for materials and services that the business uses.
What Small and Midsize Businesses Need to Know About Indirect Spend Management
When trying to reduce costs, most small businesses rely primarily on more direct spending. This primarily addresses staff. However, indirect spend management is an important tool that can be used. Small businesses need to engage in this indirect form of spend management to control their costs. This means constantly working with vendors to ensure that they are getting the best prices. It may also mean working with outside consultants to get a better handle on how to minimize costs.
Related terms
- Procurement
- Bill of Materials (BOM)
- Advanced Driver Assistance Systems (ADAS)
- Smart Factory
- Strategic Sourcing
- Value-Added Reseller (VAR)
- Telematics
- Supply Chain
- Vendor
- Enterprise Resource Planning (ERP)
- Supply Chain Planning (SCP)
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Total Quality Management (TQM)
- Vendor Management
- Senpai
- Radio-frequency Identification (RFID)
- Loopback
- Total Cost of Ownership (TCO)
- Electro Mobility (e-Mobility)
